Associating Brands to Nations: Why and How?: A Case Study of Orrefors Kosta Boda

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UPPSALA UNIVERSITET

Department of Business Studies Bachelor Thesis

2010-01-07

Associating Brands to Nations:

Why and How?

- A Case Study of Orrefors Kosta Boda

Authors: Sylvia Fridjonsson Emma Mersmann

Advisor: Cecilia Pahlberg

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Acknowledgements

We would like to express how thankful we are for the guidance and support we have received throughout the process of writing this thesis from our advisor, Cecilia Pahlberg, and our fellow students. Furthermore, we are grateful for Orrefors Kosta Boda‟s participation in this process. Without the active involvement of Lars Westman, Andreas Ravelli and Lena Bergström, we would not have been able to successfully complete this study.

Uppsala universitet, Sweden January 7^th, 2010

Sylvia Fridjonsson Emma Mersmann

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Abstract

As globalization has contributed to the increased availability of foreign products across global markets, it is nowadays believed by some that a prerequisite for being able to compete on increased competitive levels is to adapt a global perspective. In this sense, marketing strategies aimed at promoting brands and products must be designed to function even on a global scale. Whereas it has in the past been useful to associate brands and products to specific nations in order to create an exotic appeal, it is questionable if such a marketing strategy would be of use today.

With this in mind, this thesis aims to answer why associating a brand to a nation would be used as a marketing strategy and how such an association would be expressed in practice by having performed a single case-study of the company of Orrefors Kosta Boda and its two brands‟ marketing activities.

What this study concludes is that the main reason as to why Orrefors Kosta Boda‟s two brands are associated to Swedish attributes, which are both positive and unique, is that there is a belief that this strategy allows the brands to be differentiated from other brands, and hence increases both brands‟ equity. In addition, this study concludes that associations to Swedish attributes are developed by using a combination of two strategies, namely those of the country-of-origin strategy which serves to emphasize upon the products‟ Swedish origin in terms of production and quality, and the culture-of-brand-origin strategy which is aimed at communicating culture-based symbolic attributes assigned to, amongst many, the brands‟

heritages.

Keywords: Brand Identity, Core Identity, Extended Identity, Country-of-Origin, Culture-of-Brand-Origin

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1 INTRODUCTION ... 1

1.1BACKGROUND ... 1

1.2PROBLEM DISCUSSION ... 1

1.3RESEARCH QUESTION ... 2

1.4RESEARCH OBJECTIVE ... 2

1.5LIMITATIONS ... 2

1.6STRUCTURE OF THE THESIS ... 3

2 LITERATURE REVIEW ... 4

2.1MARKETING STRATEGIES ... 4

2.1.1 Branding as a Marketing Strategy ... 5

2.2THE BRAND-BUILDING PROCESS ... 6

2.2.1 Brand Identity ... 6

2.3ASSOCIATING BRANDS TO NATIONS –ABRANDING STRATEGY ... 7

2.3.1 Country-of-Origin ... 8

2.3.2 Culture-of-Brand-Origin ... 9

2.4THEORETICAL FRAMEWORK ... 11

3 RESEARCH METHODOLOGY ... 12

3.1RESEARCH PLAN ... 12

3.2SAMPLE SELECTION ... 12

3.2.1 Choice of Research Object ... 12

3.2.2 Respondents ... 13

3.3DATA COLLECTION METHOD ... 14

3.3.1 Documentation ... 14

3.3.2 Interviews ... 14

3.4DATA ANALYSIS ... 15

3.5CRITIQUE OF METHODOLOGY ... 15

4 EMPIRICAL RESULTS AND DATA ANALYSIS ... 17

4.1THE BRAND-BUILDING PROCESS OF THE BRANDS OF ORREFORS KOSTA BODA ... 17

4.1.1 Brand Audit ... 17

4.1.2 The Brand Identities of Orrefors and Kosta Boda ... 18

4.2ENHANCING THE IDENTITIES OF ORREFORS AND KOSTA BODA –ASSOCIATING THE BRANDS TO SWEDEN ... 19

4.2.1 Country-of-Origin ... 20

4.2.2 Culture-of-Brand-Origin ... 20

5 DISCUSSION ... 22

6 CONCLUSION AND FURTHER RESEARCH ... 25

6.1CONCLUSION ... 25

6.2SUGGESTIONS FOR FURTHER RESEARCH ... 25

7 REFERENCES ... 27

APPENDIX I A: INTERVIEW QUESTIONS FOR LARS WESTMAN, MARKETING DIRECTOR ... 30

APPENDIX I B: INTERVIEW QUESTIONS FOR LARS WESTMAN, MARKETING DIRECTOR (ENGLISH TRANSLATION) ... 32

APPENDIX II A: INTERVIEW QUESTIONS FOR ANDREAS RAVELLI, EXPORT SALES MANAGER ... 34

APPENDIX II B: INTERVIEW QUESTIONS FOR ANDREAS RAVELLI, EXPORT SALES MANAGER (ENGLISH TRANSLATION) ... 35

APPENDIX III A: INTERVIEW QUESTIONS FOR LENA BERGSTRÖM, ORREFORS DESIGNER ... 36

APPENDIX III B: INTERVIEW QUESTIONS FOR LENA BERGSTRÖM, ORREFORS DESIGNER (ENGLISH TRANSLATION) ... 37

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Associating Brands to Nations Fridjonsson & Mersmann

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1 Introduction

In this introductory part of the thesis, a basic background discussion regarding globalization and its consequences will be held. Following this is a problem discussion which seeks to deeper analyze the implications of globalization on marketing strategies. This, in turn, will make way for the presentations of this study’s research question as well as research objective.

1.1 Background

Although there exist some discussions about whether or not globalization is a „new‟

phenomenon, or maybe even more profoundly, regarding what the concept of globalization actually entails, there is little doubt as to whether or not globalization, so far, has influenced many aspects of the world's societies (Dicken, 2003, p. 10). With this in mind, even though simple, the definition of globalization as a "... process by which economic, political, cultural, social, and other systems of nations are integrated into world sub-systems" (Clark, Hodis, &

D‟Angelo, 2009, p. 28), is relevant as it takes into consideration that it is a variety of societal aspects, rather than just any single one, which are affected by globalization.

Although many discussions regarding the impact of globalization have been, and still are, focused to a great extent on the creation of global economies (Ohmae, cited in Dicken 2003, p.11), many discussions have also been centered around the potential development of global cultures. As national borders have evolved into being purely physical country outlines and nation-specific cultures have spilled over those borders, an intertwining of national cultures has taken place (Friedman, 2007, p. 169). As products, symbols and values have crossed national borders due to global trade and interaction, the world's preference structure has become increasingly homogenized (Levitt, cited in Rosenbloom & Haefner, 2009, p, 267). In terms of products, globalization has increased the availability of foreign products in countries around the world. Hence, one of the many effects of globalization is reflected in the presence of foreign goods in stores and markets worldwide (Hammond & Grosse, 2003, p. 285).

1.2 Problem Discussion

With regards to the fact that products are today increasingly available across global markets, marketers are faced with having to design marketing strategies which are applicable even on a global scale. In the past, although designed to function under other market conditions than

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those of today, associating brands to nations has been an effective strategy for creating an exotic appeal for consumers (Usunier & Lee, 2005, p. 265). For instance, people experience a part of the American lifestyle when they enter a McDonald‟s restaurant, take part of the French romance when they use a Cacharel perfume, or experience the German gemütlichkeit as they taste a Löwenbräu beer (Usunier & Lee, 2005, p. 265).

However, as globalization has taken place, marketing strategies have had to be reevaluated, and possibly even altered in order to see to the changing surroundings (Cayla & Arnould, 2008, p. 86). Although some associations between countries and brands such as Chanel and France, Swatch watches and Switzerland, Mercedes and Germany can still be made (Aaker, 1996, p. 82), it has nowadays become problematic to establish such associations as the loss of nation-specific identities (Hammond & Grosse, 2003, p. 286) has decreased the relevance of marketing a brand‟s origin. In other words, it is questionable whether associating a brand to a nation is a marketing strategy which should be implemented yet today.

1.3 Research Question

Why would associating a brand to a nation be used as a marketing strategy and how would such an association be expressed in practice?

1.4 Research Objective

The objective of this thesis is to study why the two brands of Orrefors Kosta Boda AB (henceforth Orrefors Kosta Boda) are associated to their home nation of Sweden, especially with regards to what the company believes to be the benefits and/or detriments of doing so.

Furthermore, the thesis aims to study how both brands‟ associations to Sweden are expressed in actual practice by focusing on the specific strategies used to market these two brands.

1.5 Limitations

This study will not take into consideration the ownership of Orrefors Kosta Boda but rather focus on its two brands. This is due to the fact that the brands were established and developed prior to any acquisitions¹.

1 Orrefors Kosta Boda was owned by the Danish company Royal Scandinavia between the years of 1996 and 2005 (Kosta Boda, 2009) and is since then owned by The New Wave Group.

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Another limitation to this study is concerned with not seeing to Orrefors Kosta Boda‟s consumers but to look at the brands and their creation purely out of the company‟s own perspective. Although the focus does lie on the company it is rather difficult to completely avoid discussing consumers and consumer behavior as there would be no point in branding, or marketing at all, if the consumers did not exist and have opinions.

Even though it would be of interest to try to identify a correlation between Orrefors Kosta Boda‟s branding and the company‟s overall success, both defining what the concept of success actually implies and being able to see the direct effect of branding on success, would be rather difficult.

Yet another point to make is that of this study not aiming to generalize its results and make them applicable to other companies, whether Swedish or not, but to see to the brands of Orrefors Kosta Boda only.

1.6 Structure of the Thesis

Henceforth, this thesis will entail five major parts; a literature review, a methodology, an empirical results and data analysis, a discussion and lastly a conclusion.

The literature review part of this thesis develops in complexity as it will start off with an outline of some of the basic branding theories and will finish off by presenting theories which combine the concept of branding with that of associating brands to nations. The methodology part will give both detailed accounts of how this study of Orrefors Kosta Boda was conducted as well as explain as to why the chosen methods were of the greatest use. In the empirical results and data analysis part of this thesis, the results of the empirical study will be presented as well as linked to the theoretical framework provided in the literature review. Following this, the thesis will be concluded by a discussion concerning the empirical results, in turn, leading to this study‟s conclusion.

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2 Literature Review

In this literature review part of the thesis, the literature used to explain the concepts applied within this thesis is presented. This review begins by explaining some basic terms and ideas associated with branding and brand identities, then continues on by discussing the idea of associating brands to nations, and finishes by presenting two possible strategies for doing so.

2.1 Marketing Strategies

With the effects of globalization in mind, it has been argued that it is significant for marketing strategies to take on a more global perspective and to be designed to function on a worldwide scale (Douglas & Wind, 1987, p. 19). More specifically, global marketing strategies should focus on developing global products and brands, as the key to success on today's globalized markets is argued to lie in the standardization of the marketing of both products and brands (Levitt, cited in Douglas & Wind, 1987, p. 19). The writings of branding gurus and marketing academics implicitly assume that the principles of building a strong brand are basically the same across cultures (Cayla & Arnould, 2008, p. 87).

On the other hand, it is reasoned that adapting marketing strategies to local markets is necessary as different markets are, still today, to some extent characterized by a variety of preferences. In other words, although some homogenizations of consumer markets have taken place due to globalization, there still exist specific cultural variables such as history and geography (Lim & O‟Cass, 2001, p. 122) which contribute to creating variations amongst markets and consumer behavior (Usunier & Lee 2005, p. 88). On that note, it is argued that adaptations of products and customizations of marketing strategies to market-specific characteristics might yield greater returns (Fisher, Kotler, Vedder, cited in Douglas & Wind, 1987, p. 19).

And viewed from yet another perspective, it has been argued that rather than choosing one of these sides, both marketing strategies can be applied; that standardization should be implemented only to the point where it is feasible, and that adaptation should take place only if it is necessary. (Usunier & Lee 2005, p. 248)

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5 2.1.1 Branding as a Marketing Strategy

One specific type of marketing strategy is that of branding; a strategy aimed at promoting a product by portraying everything that a company and its products supposedly stand for.

(Beckham, 2000, p. 2) Although this definition is just one of many, it highlights the idea that a brand, put simply, stands for something. Discussions regarding brands are not necessarily concerned with whether or not a brand does serve a function, but rather centered around the arguments of what kind of function a brand does serve. (See Kotler, cited in Erdem, Swait &

Valenzuela, 2006; Aaker, 1996; Aaker, 2004; Lim & O‟Cass, 2001)

Within marketing, it has been argued that one of the dimensions most essential to the survival and to the creation of a competitive advantage of a product is that of differentiation. According to Kotler (cited in Erdem, Swait & Valenzuela, 2006, p. 34), a brand, regardless of whether it is a name, term, sign, symbol, design, or even a combination of these, is intended to differentiate the products of one seller from those of others, and hence, making that seller distinguishable from his competitors. Since a consequence of failing to accomplish differentiation is that consumers will perceive all sellers and products to be the same (Aaker, 2004, p. 136), it is rather crucial that marketing strategies are focused on building brands which, in turn, should create some distinction between various sellers and products. On the other hand, if seller and product differentiation is achieved then a brand's success might be more likely, as the dimension of differentiation is pointed out by the Brand Asset Valuator study (BAV) to play a significant role in a brand's success (Aaker, 2004, p.

136).

Brands also serve to communicate what they, the seller and the product stand for. In this sense, a brand should reach out to consumers with information about what they are purchasing. What is important to note here is that, as validation amongst consumers is only obtained if the information which a brand provides is believable, it is crucial for a brand to communicate both expert and trustworthy information (Erdem, Swait & Valenzuela, 2006, p.

35). Hence, if the information communicated is believable, then a brand serves as validation to consumers. It is also argued that the meaning (McCracken, cited in Lim & O‟Cass, 2001, p.

120) which a brand communicates will add value to a product in consumers‟ minds by conveying a certain competence, standard and image (Lim & O‟Cass, 2001, p. 120). In other

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words, the brand communicates credibility (Fatt, cited in Lim & O‟Cass, 2001, p. 120).

Brands serve a variety of purposes, and differ in significance, yet, if managed right, they are valuable since they add credibility, aid consumers‟ memories and the communication with them, and could even contribute to creating a competitive advantage. (Aaker, 2004, p.143)

2.2 The Brand-Building Process

The brand-building process is a structured approach to branding, consisting of three sequential stages within which (1) brand audit, (2) brand identity and (3) brand position statements are performed and created. Within the brand audit stage, both internal factors such as vision, organizational culture and brand architecture, as well as external factors such as competitors and consumers, are taken into consideration. Central to the brand-building process is the secondary stage which entails the creation of a brand identity; the creation of the customer-perceived image of a brand. During the final step of the process, a brand position statement is determined. (Wallström, Karlsson, Salehi, Sangari, 2006, p. 42) This serves to emphasize upon and communicate the attributes believed to reflect the brand identity in the best possible way (de Chernatony, Knox, Urde, Aaker, cited in Wallström et al., 2006, p. 43).

2.2.1 Brand Identity

Although all three stages of the brand-building process are important, developing and implementing a brand identity is central to building a strong brand (Aaker, 1996, p. 25;

Wallström et al., 2006, p. 42). A brand identity consists of both a core and an extended identity. The core identity entails what a brand stands for; the timeless essence of a brand that does not change even though a brand travels to new markets. The extended brand identity, on the other hand, involves the intangible enhancements of the brand including the associations made to a brand. These associations can be made in terms of a brand as a (1) Product, (2) Organization, (3) Person or (4) Symbol. (Aaker, 1996, pp. 86-87)

In today‟s environment, it is not easy to build a strong brand. Not only is there a need to know the brand‟s identity but also to understand the brand‟s role in each situation in which it is involved. (Aaker, 1996, p. 31) In order to successfully build a brand, an understanding of how

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to create a brand identity is needed; to define what the brand stands for and how to communicate that identity most effectively (Aaker, 1996, p. 35).

Although there is no need for all four of the possible brand associations of a brand to be implemented into a brand identity, the possibility of making the previously mentioned associations between a brand and a (1) Product, (2) Organization, (3) Person or (4) Symbol (Aaker, 1996, p. 79), should be taken into consideration. Yet, the associations chosen to be implemented should only be those which contribute positively to the customers‟ perceptions of a brand (Aaker, 1996, p. 78).

Figure 1: Aaker’s Brand Identity Planning Model (Aaker, 1996, p. 79). Emphasis upon the colored boxes. Own construct, Fridjonsson & Mersmann, 2009.

Associations made between a brand and a symbol is a strategy applicable in order to strengthen the consumers‟ recognition of a brand. Brand heritage is one of the possible symbol associations which can be made. (Aaker, 1996, p. 85) A brand can also be associated with a product, in terms of for example the country-of-origin concept (Aaker, 1996, p. 82).

2.3 Associating Brands to Nations – A Branding Strategy

With regards to branding, it is proposed that an association between a brand and the country from which it originates is of central value to a brand‟s equity (Sinclair, 2008, p. 217; Keller, Shocker et al., cited in Agrawal & Kamakura, 1999, p. 256), as a brand‟s market position and differentiation, as well as the consumers‟ purchasing decisions are affected by such an association (Jaworski & Fosher, 2003, p. 101). A brand‟s aggregate value is dependent upon

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whether positive or negative associations to the country from which the brand originates are made. As several studies have proven, consumers tend to evaluate products based on which country they are associated with (Hong & Whyer, cited in Keillor, Hult, Erffmeyer &

Babakus, 1996, p. 58), and so, whether positive or negative associations to a brand‟s home nation are made, either intangible assets or liabilities for a brand are created (Pappu, Quester, Cooksey, cited in Zeugner-Roth, Diamantopoulos & Montesinos, 2008, p. 578). Put differently, the country name itself can add to or subtract from the consumer perceived aggregate value of a product (Aaker, Keller, Kotler & Haider & Rein, Lampert & Jaffe, cited in Zeugner-Roth et al., 2008, p. 580).

For a company, the combination of a strong brand image with a strong country image makes for an ideal strategic market position, such as the one which Volvo made in Sweden has obtained (Jaffe & Nebenzahl, 2006, p. 123). In this sense, and keeping in mind the aggregate value of a brand associated to a nation, global corporations often keep such a brand association as the brand is taken over. The incentive for a global corporation to maintain such an association is the potentially increased equity of the global corporation as a whole.

(Sinclair, 2008, p. 222) Yet, there is also a risk for a negative turnout in which the brand equity is diminished if the country image is overall negative (Jaworski & Fosher, 2003, p.

101).

2.3.1 Country-of-Origin

Associating a brand to a product is a significant association to be made as it is directly linked to the consumers‟ brand choice and their user experience (Aaker, 1996, p. 78). Therefore, and with regards to today‟s highly competitive global markets, branding with the concept of country-of-origin is a powerful marketing tool (Ryan, 2008, p. 20). Associating a brand to a product‟s country-of-origin is a strategic move in the hope of adding credibility to a brand as a whole (Aaker, 1996, p. 82). Yet, in order to add credibility to a brand with the help of a country-of-origin association, it is required that, as mentioned, the country with which the brand is associated is one with a positive reputation (Iversen & Hem, cited in Zeugner-Roth et al., 2008, p. 581).

What is important to note though, is that the country-of-origin effects, in a traditional sense,

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are not viewed to be the same nowadays as they were before the development of so-called hybrid products. As the presence of hybrid products on global markets has increased, consumers have found it more difficult to evaluate products simply based on the distinguishability of a product‟s country-of-origin, due to the fact that a hybrid product today might be designed, manufactured and assembled in different countries. (Baker & Micjie, Chao, cited in Lim & O‟Cass, 2001, p. 122) In other words, the complex country-of-origin information provided by today‟s hybrid products, leaves consumers faced with having to, themselves, determine and evaluate products with regards to what they believe to be their country-of-origin. Regardless of the consequences of today‟s hybrid products, there has been a developing trend in arguing that the country-of-origin concept has evolved into being a concept only used to influence consumers‟ perceptions of the quality (Khachaturian &

Morganosky, cited in Lim & O‟Cass, 2001, p. 121), as well as the purchasing value (Ahmed

& d‟Astou, cited in Lim & O‟Cass, 2001, p. 121) of products.

2.3.2 Culture-of-Brand-Origin

Much of the country-of-origin literature has focused on the effects of product origin as opposed to on the effects of brand origin (Chao, Pecothich & Rosenthal, Pirson, Verlegh &

Steenkamp, cited in Thakor & Lavack, 2003, p. 395). It has been proposed that, due to the development of hybrid products, and hence the development of country-of-origin information complexity, the dominance of country-of-origin information is decreasing and being replaced by the need for culture-of-brand-origin information. This information is believed to be more available to the consumers as the marketing activities of a brand expose them to such information. (Lim & O‟Cass, 2001, p. 123) Even though specific information regarding the country from which the brand originates is unavailable, the marketing of culture-of-brand- origin information may influence the consumers to assign a certain country‟s cultural characteristics to a brand (Lim & O‟Cass, 2001, p. 123).

As a part of his brand-as-symbol association, Aaker (1996, p. 79) includes the aspect of a brand‟s heritage. It is suggested that a strong symbol constitutes the cornerstone of a brand strategy, and that a brand heritage, in some cases, represents the essence of a brand (Aaker, 1996, p. 85). It is here important to note that, although some universal symbols do exist, the interpretations of what symbols stand for differ across countries as the symbolic meanings are

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culture-based (Usunier & Lee 2005, p.249). Therefore, associating a brand to a symbol, more specifically, associating a brand to its heritage implies that associations to an entire culture have been made rather than seeing to make just geographical and historical associations (Ryan, 2008, p. 20).

Although brand origin, another term used while discussing a brand‟s culture-of-origin, can be viewed as a demographic variable (Thakor & Kohli, 1996, p. 28) and in terms of the place, region or country from where a brand is perceived to originate (Thakor & Kohli, cited in Thakor & Lavack, 2003, p. 396), brand origin also reflects part of a brand‟s personality and identity (Thakor & Kohli, 1996, p. 28). It is suggested that the associations made to a brand‟s origin reflect some of the most prominent characteristics of a brand (Thakor & Lavack, 2003, p. 396), hence yielding the way for defining a brand‟s position statement and identity.

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11 2.4 Theoretical Framework

In order link the terms and concepts presented within this literature review, a theoretical framework has been developed. This theoretical framework seeks to point out the connections between some of the most, in this study, significant theories; how the concepts of branding and the associations made between a brand and a specific nation are interconnected.

Figure 2: Theoretical Framework developed for this thesis. Emphasis upon the colored boxes.

Own construct, Fridjonsson & Mersmann, 2009.

The Brand- Building Process

Brand Audit Brand Identity

Core Identity Extended Identity

Associating a Brand to a

Nation

Country-of- Origin

Culture-of- Origin Brand Position

Statement

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3 Research Methodology

In this part of the thesis, the methodological framework used for this study will be presented.

Furthermore, explanations as to why the chosen methods are the most suitable for this study will be given.

3.1 Research Plan

In order for the research question to be answered as thoroughly as possible, this study was aimed at both exploring in depth why, and describing in detail how brands are associated to a nation. In order to gain such qualitative data, a single-case study was chosen and performed.

This allowed this thesis to study a specific research object in a contemporary and real context.

3.2 Sample Selection

3.2.1 Choice of Research Object

To begin with, one of the most important criteria for the selection of the object of research was that it was of Swedish origin. This criteria was set not just because of the fact that this thesis is composed at a Swedish university, in a Swedish setting, but mainly due to the interesting fact that although Sweden is a country of small proportion, many internationally recognized and established firms and products have originated from this country². With this in mind, it was important that the research object should be operating on a global level, as studying the marketing strategy of associating a brand to a nation would otherwise not be relevant.

On that note, it is of significance to mention that it was not necessary for the seller to be Swedish, as this study does not take into consideration ownership, and that it was rather the nationality of the product which was of importance. Furthermore, rather than just seeing to products and their origins, there was an underlying interest in studying the concept of brands and their origins. The interest in brands and the brand-building process, including brand identity, is based on the idea that brands might be of a greater dimension and might demand greater attention within the fields of strategic marketing than do simple products.

2 Internationally recognized and established Swedish companies and products such as IKEA, VOLVO, Saab, Atlas Copco, Tetra Pak, STORA, ABB, Electrolux, Scania etc.

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Orrefors Kosta Boda, as this thesis‟ research object, was a rather obvious choice as the company‟s brands answer to all of the criteria put forth. Before this study commenced, there was a belief that, regardless of the fact that Orrefors and Kosta Boda are nowadays part of the same business, the brands, apart from each other, both possess attributes which express their Swedish origin. What was also of interest was the fact that the two brands function under the same management, yet stand for different things (Kosta Boda, 2009; Orrefors, 2009).

3.2.2 Respondents

Once Orrefors Kosta Boda had been selected as this study‟s research object, choices had to be made regarding the selection of respondents from the company. Since the research objective of this thesis is to study the brands as well as the branding strategies implemented at Orrefors Kosta Boda, the respondents chosen to be part of this study work for the company of Orrefors Kosta Boda.

Lars Westman, Marketing Director at Orrefors Kosta Boda, was asked to partake in this study due to the assumption that he would be able to provide the most expert information about and insight into questions regarding anything having to do with the marketing of both Orrefors and Kosta Boda.

In order to receive answers to the questions concerning marketing on, more specifically, foreign markets, Andreas Ravelli, Export Sales Manager at Orrefors Kosta Boda, was approached. The intention with approaching him was not necessarily to gain information about exactly how the exportation of Orrefors Kosta Boda‟s products occurs, but rather to be provided with insight as to how the products are perceived on foreign markets, in other words, what the brands are believed to stand for on markets outside of Sweden.

To gain yet another perspective of both why and how Orrefors Kosta Boda‟s two brands are associated to Sweden, Lena Bergström, a designer for Orrefors, was asked to be a part of this study. The ambition with interviewing her was to receive insight as to if, why and how a designer chooses to work with associations when it comes to designing products.

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Lastly, the ambition was to be able to establish some contact with Orrefors Kosta Boda‟s only wholly-owned sales office located in New Jersey, USA. The belief was that if the study was provided with a foreign perspective to the research objective, then some of the ideas as to how the brands are perceived on foreign markets might have gained further support and perhaps even some validation. Despite several attempts to establish contact with the foreign sales office of Orrefors Kosta Boda, no responses were obtained.

3.3 Data Collection Method

Throughout this study, different types of data were collected and made use of, seeking to answer the research question. At first, it was necessary to explore academic literature in order to outline this study‟s theoretical framework, in turn, making it possible to collect empirical data relevant for the research objective.

3.3.1 Documentation

One type of data collected for this study entailed information regarding the brands of Orrefors Kosta Boda provided by the company‟s web pages. This information allowed for some underlying assumptions regarding the brands to be made, prior to articulating this study‟s research question.

Following the articulation of the research question as well as objective, data from academic literature, in terms of theories relevant to the concepts of brands, branding, associations to nations and both country-of-origin and culture-of-brand-origin, was collected. This, in turn, outlined the theoretical framework upon which this study is based. The academic literature, from which the theories were gathered, consists of a variety of texts published in only academic journals and academic books, and does not entail texts from either bachelor- or master theses‟.

3.3.2 Interviews

Data, central to this study, was collected through two semi-structured interviews, on site, with the respondents from Orrefors Kosta Boda, Lars Westman and Andreas Ravelli, as well as through one semi-structured interview over the phone with the third respondent, Lena Bergström. Choosing to conduct semi-structured interviews was based on the belief that

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neither structured nor unstructured interviews would provide the most suitable and useful data. The semi-structured interview type seemed to be the most appropriate one to use as it would provide a direction for the interview, in terms of themes and concepts, yet would allow for an open discussion and dialogue to occur as interpretations can be made throughout the interview. (Saunders, Lewis & Thornhill 2009, pp. 320-321)

The interviews were designed to follow some themes, including those of the brands‟ history, the brands‟ current marketing strategies and the associations between the brands and Sweden.

Although the interview questions followed some themes, the questions were designed to avoid leading the respondents on and letting them answer according to what they believed to be the correct or wanted answers. (See Appendices I-III for the interview questions)

3.4 Data Analysis

Keeping in mind that a single case study was conducted, the most appropriate type of data analysis seemed to be a within-case analysis since this would allow for a comparison between the qualitative data collected by the interviews and the developed theoretical framework to be done. The aim of the comparison between these data was to distinguish some possible correlations between the ideas of why and how something such as branding should be done in theory, and why and how Orrefors Kosta Boda actually does it in practice. Any similarities, dissimilarities, patterns and correlations were first identified, in order to then be further analyzed and discussed.

3.5 Critique of Methodology

Questioning the reliability of the study is the possibility of subject or participant bias (Saunders et al., 2009, p. 156). In this case, it is questionable whether or not the information received from the respondents is reliable as their employment at Orrefors Kosta Boda might cause their responses to be in favor of the company. Yet another aspect questionable is that of an observer bias possibly existing (Saunders et al., 2009, p. 157) as the interviews were performed after the outlining of the theoretical framework.

In line with this, although the interview questions were designed to avoid leading the respondents on to give certain answers, there is, as always, a slight risk for questions to be

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interpreted by the respondents as leading. This risk might have been increased due to the fact that all the interview questions were sent to the respondents ahead of time. Yet, this can also yield the opposite effect as the respondents might be more prepared.

Another critique towards this study‟s methodology is aimed at the interpretations of the data collected from the interviews. Interpreting this type of qualitative data entails a possible risk for misinterpreting what is actually meant with a response. In line with this, and with regards to the fact that all interviews were conducted in Swedish and this thesis is written in English, there also exists a risk for translations causing responses to receive a meaning slightly different from the meaning assigned to the responses given in Swedish.

Another point to make is that if the respondents from Orrefors Kosta Boda believed that the results of this study could either advantage or disadvantage them in any way, then that could affect the actual results of this study. Furthermore, there could have been events or happenings unrelated to this study which could still have influenced the respondents and responses indirectly.

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4 Empirical Results and Data Analysis

In this result-analyzing part of the thesis, the results of the three performed interviews will be presented and analyzed in correlation to the already developed Theoretical Framework.

4.1 The Brand-Building Process of the Brands of Orrefors Kosta Boda 4.1.1 Brand Audit

In order to analyze what the brands of Orrefors and Kosta Boda stand for today, it is of significance to first look back at the brands‟ history as it has had great influence on what they have come to stand for.

Although established at different points in time, Kosta Boda in 1742 and Orrefors in 1898, the two glass factories were fierce competitors throughout most of the 20^th century (Westman, 2009) as they both were at the forefront of Swedish glass production. Regardless of exactly why, Orrefors came to be viewed as Kosta Boda‟s role model as much of Orrefors‟ glass seemed to be imitated by Kosta Boda (Westman, 2009). Yet, both Orrefors and Kosta Boda, separately, managed to establish strong brands which were successful throughout the 20^th century. Consequently, and as a result of decades of competition, both Orrefors‟ and Kosta Boda‟s brands were shaped by the awareness of each other, an external factor central to the brand audit part of the brand-building process for the two of them (Wallström, 2008, p. 42).

While Kosta Boda did take its art glass production into a new direction in the beginning of the 1980‟s in an attempt to differentiate its art from that of Orrefors (Westman, 2009), the two companies remained within much of the same competitive area of the art glass industry. This changed as Orrefors acquired Kosta Boda in 1990. In hope of strategically being able to maintain as well as develop two strong brands, each with an individual brand identity and within the same company, Orrefors Kosta Boda aimed its strategies at creating an even greater distinction between the two brands (Westman, 2009). In order to do so, throughout the auditing phase (Wallström, 2008, p. 42), Orrefors Kosta Boda saw to the internal factors of the two brands‟ individual visions and identities. Although a merger of the two brands would have been more economically justifiable as it simply is less expensive to manage one brand than it is to manage two (Westman, 2009), it was believed that there would be greater benefits to be gained by having two brands.

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4.1.2 The Brand Identities of Orrefors and Kosta Boda

Regardless of the fact that much has changed in terms of market characteristics (Dicken, 2003, p. 10) and within the fields of marketing (Cayla & Arnould, 2008, p. 86) since the two brands came to be, Orrefors Kosta Boda has been, and still is, focused on maintaining the core identities of its two brands. The strategies implemented in order to do so, maintaining the timeless essence of the brands (Aaker 1996, pp. 86-87), are those of standardization (Levitt, cited in Douglas & Wind, 1987, p. 19); strategies which make sure that what the brands stand for is not sacrificed (Westman, 2009).

In terms of product design, the product selection by a council consisting of representatives from the production-, marketing-, sales-, and product development departments (Bergström, 2009), contributes to maintaining rather specific core identities for both brands. It is here important to note that the designs are not adjusted to specifically fit the brand identities of Orrefors or Kosta Boda, but that the designers‟ own design articulation and analysis are fused with the brands‟ visions in order to create synchronized images (Bergström, 2009). Yet, even though standardizations of the core identities do not allow for the essence of the brands to change even as the brands travel to new markets (Aaker, 1996, pp. 86-87), some design adjustments can still be made to products without compromising what the brands‟ core identities entail (Westman, 2009; Bergström, 2009). For example, in order to answer to its‟

greatest foreign market‟s preferences, Orrefors Kosta Boda adjusts the sizes of its whiskey glasses to fit American market preferences (Westman, 2009; Bergström, 2009).

In contrast to the necessity of standardizing what a core identity stands for, there is a need to customize the strategies (Fisher, Kotler, Vedder, cited in Douglas & Wind, 1987, p. 19) of enhancing a brand‟s extended identity (Aaker, 1996, pp. 86-87). On that note, a brand identity must not only be maintained, but must also be further developed so that the entire brand identity is strengthened. In the case of Orrefors Kosta Boda, it is partially a designer‟s task to be perceptive of the changes in market preferences which occur (Bergström, 2009; Lim &

O‟Cass, 2001, p. 122), to then be able to translate those perceptions into product designs which the designer believes might appeal to consumers (Bergström, 2009). With this in mind, parts of the extended brand identity are affected by whoever the designers are at the time (Bergström, 2009). In addition to the designers‟ influence, the marketers at Orrefors Kosta

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Boda contribute to the development of the extended brand identities of Orrefors and Kosta Boda by deciding upon the brands‟ brand position statements. In order to emphasize and communicate the attributes which represent the brands most beneficially (Wallström, 2008, p.

43), Orrefors Kosta Boda has assigned the statements “Embrace the Moment” to Orrefors and

“True Passion” to Kosta Boda (Westman, 2009).

In spite of whether or not, or to which extent, core identities are standardized or extended identities and the marketing strategies are customized the purposes which Orrefors Kosta Boda‟s brand identities serve, are to differentiate the brands from others. Hence, what both brand identities communicate are that the brands‟ products not only serve useful functions (Westman, 2009), but that they also provide uniqueness (Ravelli, 2009). Providing products such as the hand-made wine glasses, each glass slightly different from the other, is what Orrefors Kosta Boda believes to be both brands‟ unique selling point; the believed reason as to why Orrefors Kosta Boda‟s products appeal to consumers (Ravelli, 2009). Put differently, providing unique products with distinct characteristics is a way of survival (Bergström, 2009).

4.2 Enhancing the Identities of Orrefors and Kosta Boda – Associating the Brands to Sweden

In the case of Orrefors Kosta Boda, associating both brands to Sweden is a way to provide products which are differentiated from others (Westman, 2009), as being Swedish implies that one has something unique to offer (Bergström, 2009). It is suggested that strategically associating a brand to a nation would only be useful if the country to which a brand would be associated has a positive image (Westman, 2009; Pappu, Quester, Cooksey, cited in Zeugner- Roth et al., 2008, p. 578). With regards to the fact that either intangible assets or liabilities for a brand are created depending on whether positive or negative associations to the brand‟s home nation are made, Orrefors Kosta Boda is certain that its brands‟ associations to Swedish attributes increase the equity of both brands (Ravelli, 2009). This is due to the belief that Sweden itself, as a country, is a strong brand (Ravelli, 2009). Furthermore, there is a belief that this positive perception of Sweden might be attained partially through the country‟s political neutrality and strong democracy (Ravelli, 2009), the historically significant Swedish innovations such as the zipper and the wrench (Westman, 2009), but also further reinforced by the existence of many strong brands such as those of Ericsson, Volvo, Saab, SSAB, Atlas

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Copco and ABB still today (Ravelli, 2009). Moreover, it is thought that combining a strong country image, such as the Swedish one, with a strong brand image makes for an ideal strategic market position; just as the previously mentioned one which Volvo has obtained (Jaffe & Nebenzahl, 2006, p. 123) by combining its Swedish image with its strive for high quality and safety (Westman, 2009). Of course, the perceptions of the Swedish country image vary in matter as the northern parts of Germany, for example, tend to evaluate the image positively as a certain geographical closeness to and cultural understanding of Sweden exists.

Additionally, it is argued that the Dutch also perceive the Swedish country image as positive due to the fact that the Netherlands, just as Sweden, has a royal house. (Ravelli, 2009)

4.2.1 Country-of-Origin

Despite the fact that it is rather expensive to manufacture in Sweden, seeing that the overall price-level is quite high, Orrefors Kosta Boda is determined to keep its glass production in its original location in the woods of Småland (Ravelli, 2009) in order to avoid the products evolving into more hybrid-like products (Baker & Micjie, Chao, cited in Lim & O‟Cass, 2001, p. 122). Part of the reason as to why Orrefors Kosta Boda is set on doing so is to be able to continue to market its products with a “made in Sweden” label, a label which, in the case of Orrefors Kosta Boda‟s products, is synonymous with quality as well as uniqueness. (Ravelli, 2009; Khachaturian & Morganosky, cited in Lim & O‟Cass, 2001, p. 122). Creating this type of brand-to-product association, or conveying a message of Swedish high-quality production in terms of hand-made products (Ravelli, 2009), is a strategic move made by Orrefors Kosta Boda in hope of adding credibility to its brands (Aaker, 2004, p.143). This is done, believing that associating a brand to a product‟s country-of-origin, just as Orrefors Kosta Boda does through its “made in Sweden” labels, directly affects a consumer‟s brand choice as well as a consumer‟s user experience (Aaker, 1996, p. 78). Yet, in order to do so, it is a prerequisite that the country-of-origin association made is with a country such as Sweden which has a positive reputation (Westman, 2009; Ravelli, 2009; Iversen & Hem, cited in Zeugner-Roth et al., 2008, p. 581).

4.2.2 Culture-of-Brand-Origin

Besides the geographical, brand-to-product associations (Aaker, 1996, p. 79), which are made between Orrefors Kosta Boda‟s brands and Sweden, there exists a variety of brand-to-symbol associations (Aaker, 1996, p. 79) between the brands and the Swedish culture. Both Orrefors

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and Kosta Boda have, as already mentioned, a long history in Sweden. Having had such long histories, both Orrefors‟ and Kosta Boda‟s brand heritages are made up of great amounts of cultural inheritance. Consequently, the brand heritages, the essence of both the extended brand identities (Aaker, 1996, p. 85), reflect a variety of Swedish cultural attributes.

On that note, the aspects of history and cultural heritage are used throughout the marketing of Orrefors and Kosta Boda. Orrefors Kosta Boda is convinced that pointing to both brands‟

long history is a significant part of marketing the brands on foreign markets (Ravelli, 2009).

Since both brands‟ long history is an appealing attribute on foreign markets (Bergström, 2009), the Kosta Boda logo was altered in order to make sense even outside of Sweden. The seal which (still) certifies Kosta Boda as a supplier to the Swedish royal court was removed from the Kosta Boda logo at the same time as the word “SINCE”, from right next to the company‟s establishment year of “1742”, was replaced by the word “SWEDEN” (Westman, 2009). Nowadays, both brands communicate some culture-of-brand-origin information (Lim

& O‟Cass, 2001, p. 123) as “SWEDEN” is a visible part of both brands‟ logos.

In terms of design history, as the extended identities of Orrefors and Kosta Boda are both, as previously mentioned, partially shaped by the designers and their product designs (Bergström, 2009), so are they indirectly influenced by the Swedish design heritage. Since all the designers at Orrefors Kosta Boda are Swedish, and their designs are most likely, yet perhaps unawarely, influenced by their Swedish heritage (Bergström, 2009), the products of Orrefors and Kosta Boda reflect some of the Swedish design heritage attributes; namely those of simplicity and purity (Westman, 2009). The Swedish design heritage is hence reinstated today as a designer might choose to play with historical attributes, to then reinvent them as new products are designed (Bergström, 2009).

Although Orrefors Kosta Boda is sure that making use of the brands‟ long histories and design heritages are strategies which add to the brands‟ entire equity, Orrefors Kosta Boda believes that the marketing of culture-of-brand-origin attributes is only appropriate as long as it is done tastefully and does not become an exaggeration (Westman, 2009).

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5 Discussion

In this discussion part of the thesis, the findings from the empirical analysis will be challenged and problematized so that a deeper discussion can be held.

After having presented and analyzed the empirical data as well as seeing to identify some correlations between them and this study‟s theoretical framework, there exists little doubt as to whether or not Orrefors Kosta Boda‟s brands are associated with Swedish attributes, in other words, can be described in terms of “swedishness”. Although slightly ambiguous,

“swedishness”, as a concept, expresses the idea that there exist many attributes which could be reflective of Sweden as a whole. Attributes assigned to Sweden can range anywhere from the harsh climate, the political neutrality and democracy, the history including the Vikings, and the musical talents of artists such as ABBA, all the way to the innovative minds of people such as Alfred Nobel. And in the case of Orrefors Kosta Boda, “swedishness” is articulated in everything from the geographic location of its production facilities, the selection of its designers as well as its assorted designs, all the way to the marketing strategies of its brands.

Yet, regardless of this ambiguity surrounding “swedishness”, much of the empirical data in this study has pointed to the idea that “swedishness” implies being different and somewhat unique. Hence, it can be argued that, since “swedishness” is synonymous with differentiation, it is also synonymous with adding value to a brand originating from Sweden, and in other words, increasing the brand‟s equity.

In the case of Orrefors Kosta Boda, and continuing along this line of thought, associating both brands to Sweden is used as a marketing strategy and plays a major role in the development of both brands‟ customized extended identities. However, although the empirical data does support such an argument, it does not clearly state whether or not “swedishness” is part of either one of the brands‟ standardized core identities.

It is possible that “swedishness” is not part of the core identities of Orrefors or Kosta Boda based on the thought that both brands were established so far back in history, when foreign markets were still unreachable, that branding their products as being Swedish was irrelevant and rather meaningless at that point in time. Even though this is just one of many possible reasons as to why “swedishness” is not part of the core identities, it can be reasonable to

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believe that pinpointing exactly what makes up a core identity in general is a difficult task. In the case that “swedishness” is in fact not part of the two core identities, yet is part of the extended identities, it can be argued that developing associations between the brands and Swedish attributes is a marketing strategy which today purely aims to promote the brands and their products. Although this, in general, might be a useful marketing strategy, it might also give rise to some concerns. As a brand‟s extended identity, per theoretical definition, is the enhancements of the brand, one can question whether the extended identity of a brand emphasizes upon only the best attributes of a brand. Furthermore, if only the best attributes of a brand are communicated, how can one know if those attributes are truly representative of the brand‟s core identity and not just beautifications of the truth made in order to appeal to a given context? Hence, if this is so and the beautifications have no correlation to the brand‟s core identity whatsoever, then the brand‟s credibility might be diminished.

However, just as it can be argued that “swedishness” is not part of the core identities of Orrefors and Kosta Boda due to the historical time aspect, the opposite can also be argued as this exact aspect might just have contributed to the meaning of “swedishness”. Of course, there might exist other explanations as to why “swedishness” is part of the core identities. If

“swedishness” is in fact part of the core identities of Orrefors and Kosta Boda, as well as part of their extended identities, then it is arguable to say that the enhancements, the associations, are true reflections of what the core identities stand for. In other words, it can be reasoned that if such a correlation exists then the marketing is a genuine attempt to convey the message of the brands being truly Swedish. In this sense, the brands‟ extended identities, in terms of customized associations, are just that, namely extensions of the core identities. It can be argued that, although the extended identities are somewhat customized, as any marketing strategy would be, the greater parts of them must still correlate with the standardized core identities, and not be beautified, in order to maintain credibility.

As previously discussed, the extended brand identities of Orrefors and Kosta Boda serve as marketing strategies, believed to increase the brand equities as associating to Swedish attributes adds positive meaning. Increasing the brand equities in this way, will be possible only if Sweden continues to convey a positive country image. Although Sweden, as of today, does convey a rather positive country image due to a variety of reasons, and hence adds value

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to Orrefors and Kosta Boda, any unforeseen incident could contribute to prohibiting this from happening. Furthermore, associating the brands to Swedish attributes will increase the brand equities only if nation-specific attributes will, at all, remain distinguishable from each other.

A prerequisite for this is that globalization processes, such as the intertwining of cultures and national identities, either halter or even recess.

Keeping this in mind, and once again referring to the scenarios of the extended identities of Orrefors and Kosta Boda both correlating and not correlating with their core identities, one can discuss the varying consequences which the brands face. It seems reasonable to say that there will be graver consequences facing the brands if the extended identities do correlate with the core identities, and hence “swedishness” is part of the core. This is argued with regards to the idea that core identities, in general, should not change and rather just maintain their timeless essence. Hence, if the Swedish country image is decreased in value or becomes indistinguishable from that of other countries, then a core identity in which “swedishness” is part will have to be completely reconstructed. On the other hand, if the extended identities do not correlate with the core identities, and hence, “swedishness” is not part of the core, then one can argue that adjustments to only the marketing strategies will have to be made in terms of reconstructing the extended associations to the core identities.

What is important to note here is that this study cannot determine whether or not

“swedishness” is part of either of the brands‟ core identities, but that much support exist for arguing that the extended identities incorporate associations to Swedish attributes. Although both scenarios entail certain risks, one can argue that Orrefors Kosta Boda believes that there are greater benefits to be gained by doing so, than there are losses to suffer.

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6 Conclusion and Further Research

In this concluding part of the thesis, conclusions will be drawn in order to answer this thesis’

research question. Following this, suggestions for further research will be presented.

6.1 Conclusion

Although much speculation can be done regarding both what the concept of “swedishness”

actually entails as well as what the usefulness of implementing such a concept is, it can, based on the empirical data collected in this study, be concluded that Orrefors Kosta Boda‟s two brands‟ extended identities are associated to Swedish attributes. This is reasoned to be due to the belief that marketing with the help of Swedish associations is synonymous with marketing something positive and unique as of today. What this study concludes is that one of the reasons as to why Orrefors Kosta Boda associates its brands to Swedish attributes is that this type of marketing strategy differentiates its brands from those of competitors, hence increasing both brands‟ overall equity. Yet another reason as to why such a marketing strategy is applied might be that regardless of whether or not, or to which extent,

“swedishness” is part of the core identities of Orrefors and Kosta Boda, marketing the extended identities with the help of such a concept does not imply that the associations developed deviate from what the brands actually stand for.

In order to answer how associations to a nation would be expressed in practice, this study found that depending on which brand association is made, different strategies might be applied. In the case of Orrefors Kosta Boda and how its brands‟ extended identities are associated to Sweden in practice, it was concluded that two types of strategies are applied.

The associations of the brands as products are developed with the help of the country-of- origin concept which emphasizes upon the quality and production of products, whereas the associations of the brands as symbols are developed with the help of the culture-of-brand- origin concept which serves to communicate culture-based symbolic attributes assigned to, amongst many, the brands‟ heritages.

6.2 Suggestions for Further Research

Since this thesis was limited to only answering the research question from a company perspective, namely that of Orrefors Kosta Boda‟s, it is here suggested that any further

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research regarding this matter could take into consideration the consumer perspective. A study of the consumers‟ perceptions in regards to the value of associating brands to nations would allow for conclusions to be drawn concerning the actual perceived value of such a strategy.

Furthermore, although this study touched upon the discussion of whether or not, or to which extent, “swedishness” is part of the core identities of Orrefors and Kosta Boda, it is here suggested that a more in-depth research regarding the complexity of both pinpointing what the core identities can be defined as and what significance “swedishness” plays in those definitions should be done. This could allow for conclusions to be drawn regarding the extent to which the core identities are affected by changes in the brands‟ surroundings; the extent to which the core identities of Orrefors and Kosta Boda might be affected by the diminishment of the Swedish country image equity or the decreased distinguishability between nation specific attributes.

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